financializer news A weblog highlighting financial topics making news in the international media.

Li Yifei: Man declined to comment on Ms Li, one of the nation leading businesswomen and the former head of MTV in China, according to The Independent. Read more: Why the China market crash is not what it seems China has exposed the fatal flaws in our liberal economic order Beijing reels as a nation of market speculators counts the cost China main Shanghai stock market fell 0.8 per cent on Monday, marking a 12 per cent fall for August and a near 40 per cent fall from the end of June. The London-listed FTSE 250 hedge fund manager Man Group was also dragged into the affair on Monday as it emerged that Li Yifei, the chairman of its China unit, was taken into custody to assist a police inquiry into market volatility. Coming after a 14 per cent slump in July, it is the biggest two-month fall since 2008. Authorities in China are cracking down on trading abuses and malicious short selling – betting against shares – as well as intervening in markets directly in an attempt to calm turmoil before Thursday celebration of the 70th anniversary of its victory against Japan in the Second World War. The shock waves from China – fuelled by fears over a hard landing for the previously fast-growing economy – reverberated around the world last month, wiping more than $5 trillion off the value of global stock markets as Beijing also unveiled a shock devaluation of its currency. (news.financializer.com). As reported in the news.

Boris Johnson: So the scientists have calculated that an average Londoner exposed to 2010 levels of pollution through their lives could lose around 16 months from nitrogen dioxide pollution, according to The Independent. This is around three hours loss of life each week. But death is rarely instantaneous. Put another way, the invisible toxic gas, which is the product of diesel combustion, contributed to the deaths of almost 5,000 people annually on top of the 5,000 who are hastened to the grave by better-known pollutants such a sulphur. It is therefore beyond puzzling that last week Boris approved highly controversial plans for a new cruise liner terminal at Greenwich, which will spew even more nitrogen dioxide into an area which already suffers from its proximity to the Blackwall Tunnel and is one of the worst polluted in London. The Mayor of London, Boris Johnson, has often expressed his concern over the health effects of air pollution on Londoners and several future Mayoral hopefuls have singled it out as a campaign issue. (news.financializer.com). As reported in the news.

uneasy relationship: The Xinhua state-run news agency cited the Public Security Ministry as saying that 165 online accounts were closed in the campaign latest phase, but did not specify over what period of time nor what punishments had been meted out to offenders, according to Deutsche Welle. The Chinese government maintains an uneasy relationship with the internet and regularly institutes controls over digital traffic. Two of the rumors allegedly circulating were that a "man jumped to his death in Beijing due to the stock market slump," and that "at least 1,300 people were killed in the Tianjin blasts." The official death toll in the August 12 explosions at warehouses for hazardous chemicals in the port city Tianjin is 150. Financial journalist 'confesses' In other news, a financial journalist is reported to have "confessed" to causing "panic and disorder" on China stock market and inflicting "huge losses on the country," Xinhua reported Sunday. He had written a story in July saying the securities regulator was studying plans for government funds to exit the market. Wang Xiaolu, a journalist with Caijing magazine, was detained by Chinese authorities following China recent stock market crash. (news.financializer.com). As reported in the news.

economic terms: Stock market recoveries, like those towards the end of the week, tend to receive less publicity, according to The Independent. It human nature. They’re big news. End of the world is an engaging headline. Does any of it ultimately matter in economic terms Many would argue that the answer is no. Not the end of the world isn’t. (news.financializer.com). As reported in the news.

stock market: Stocks on China Shanghai index are down close to 40 per cent from their peak in June, popping a stock market bubble fuelled by government meddling and neophyte investors, according to CBC. In August, both the Shanghai index and Hang Seng index fell 11.5 per cent. That a full correction – usually defined as a drop of 10 per cent or more. Europe Stoxx index declined 10.1 per cent in August. The TSX is down six points at the close of trading to 13,859. The losses on North American markets are more modest. (news.financializer.com). As reported in the news.

risk exposure: People are just reducing their risk exposure a little bit because nobody really knows, he said, according to The Toronto Star. Last Monday, the recent downward spiral in Chinese shares accelerated as the Shanghai composite index fell 8.5 per cent. Norman Raschkowan, senior partner at Sage Road Advisors, said Canadian investors are less concerned about recent talk of recession than they are about the volatility that struck the market last week as Chinese equity markets tanked. Worldwide markets reacted to the news with a broad sell-off, and the TSX fell more than 420 points on the day. The widely watched Dow Jones industrial average shed 1,900 points early in the week before recouping almost 1,000 points in a two-day span, including a 619-point gain Wednesday that was its third-largest of all time and the biggest since October 2008. Yet those losses were offset by gains for both the TSX and the Shanghai indexes later in the week, and other major markets also showed significant volatility. (news.financializer.com). As reported in the news.

Crude prices: She sees some recovery to around US$55 a barrel by the end of next year, according to The Toronto Star. Global oil demand in 2015 has advanced at the fastest pace in five years... but a supply-side adjustment — necessary to bring global supplies down in line with demand and rebalance world oil markets — has not yet occurred, she wrote. West Texas Intermediate crude is expected to stay below US$50 a barrel for the next 12 months, vice-president and commodity market specialist Patricia Mohr said in the report Monday. Crude prices have had a volatile year, dropping to US$43.46 a barrel on March 17, running up to a high of US$61.43 on June 10 and then plunging to a new six-year low of US$38.24 a week ago. Mohr cited three factors behind the turbulence in crude prices:Traders and investors have been disappointed the rate of production decline in the U.S., needed to bring supply and demand back into balance. On Monday, oil was back above US$47 a barrel. (news.financializer.com). As reported in the news.

: Charities have also poured scorn on centre operator Transfield five-year contract extension despite criticism from the inquiry it had failed to run the centre well, according to Nine News Australia. Save The Children said a rights-based group like theirs was better placed to run the centre. The peak bodies for aid and welfare said the findings about children in the Senate inquiry into the centre released on Monday were alarming and deserved wider scrutiny."It is vital that commonwealth action, or lack of action on child abuse be investigated by an independent commission," ACOSS and Australian Council for International Development said in a statement on Monday. The Australian Churches' Refugee Taskforce said Transfield contract extension was inconceivable and the operator should be "punished for their poor performance, not rewarded."The spotlight will be on mum and dad investors who hold shares in the operator, it added.© AAP 2015Politics Email your news tips Do you have any news photos or videos Property news: Will buyers worship heaven sent property - realestate.com.au Career news: Why career success could be right beside you - news: New York 'Sky Garage' takes parking to the next level - realestate.com.au Career news: Do you really truly want to be a leader - seek.com.au (news.financializer.com). As reported in the news.

Drake Scull International: At the same time sales of Islamic bonds, known as sukuk, dropped 41 per cent to $6.9 billion, according to Business Week. The increase in lending will be welcome for banks in the region, where oil more than 50 per cent decline in the past 12 months threatens to curtail government spending and clip economic growth. Loans that comply with Islam ban on interest in the GCC, which includes Saudi Arabia and the United Arab Emirates, have risen 22 per cent this year to $11.9 billion, the most since 2012, according to data compiled by Bloomberg. Investors are demanding higher yields amid market swings, prompting companies including Dubai-based construction contractor Drake & Scull International to delay sales. Given recent volatility, the bank loan market has provided a more stable and consistent source of funding for regional borrowers versus capital markets, where windows of issuance have been more fleeting, said Andy Cairns, the head of debt origination and distribution at National Bank of Abu Dhabi, the GCC biggest bond-arranger this year after HSBC. Top Arranger Dubai Islamic Bank, the UAE largest Shariah- compliant lender, is the biggest arranger of Islamic loans in the GCC this year. Volatility in US Treasury yields is averaging the highest since 2011 after Greece negotiated a debt bailout deal, China devalued its currency and the strengthening US economy boosted the prospects of the Federal Reserve first interest- rate increase in almost a decade. (news.financializer.com). As reported in the news.

South Chungcheong province: The project is being hailed as an encouraging symbol of cross-strait environmental cooperation, according to Asahi Shimbun. As a first step, eight artificially bred oriental storks will be released Sept 3 at the new storks park preservation center in Yesan county, South Chungcheong province, about 110 kilometers south of Seoul. Oriental white storks are an endangered species after wild birds became extinct in both Japan and South Korea by 1971 due to a loss of habitats. The western Japanese city of Toyooka, which successfully reintroduced oriental storks into the wild a decade ago, provided six birds for the South Korean endeavor as well as breeding and protection expertise. If oriental storks frequently travel between Japan and South Korea, it will increase the genetic diversity of the birds, which is essential for preservation of the species. It is encouraging to have another new research hub in East Asia, said Yasuo Ezaki, chief researcher at the Hyogo Park of the Oriental White Stork preservation facility in Toyooka. (news.financializer.com). As reported in the news.

session Wall Street: And the Australian share market looks set to open higher following a muted session on Wall Street after Moody slashed its 2016 growth forecast for the Group of 20 economies due to the hit from a slowing Chinese economy, according to Nine News Australia. At 0645 AEST on Monday, the September share price index futures contract was up 12 points at 5,246. At 0630 AEST on Monday, the currency was trading at 71.64 US cents, down from 71.67 cents on Friday. BEIJING - Chinese state media reports a financial journalist has "confessed" to causing panic and disorder on China stock market and inflicting "huge losses on the country".WASHINGTON - Federal Reserve Vice Chair Stanley Fischer says no decision has been made yet on raising interest rates at the US central bank September 16-17 policy meeting. HANOVER, Germany - Volkswagen has been told to sell its stake in Japan Suzuki, the companies say. CAIRO - Italian energy giant ENI has announced the discovery of the "largest ever" offshore natural gas field in the Mediterranean inside Egypt territorial waters. (news.financializer.com). As reported in the news.

Wang Xiaolu: Wang confessed that he wrote fake report on Chinese stock market based on hearsay and his own subjective guesses without conducting due verifications, according to Xinhua China. He admitted that the false information have "caused panics and disorder at stock market, seriously undermined the market confidence, and inflicted huge losses on the country and investors." Also put under "criminal compulsory measures" were Liu Shufan, an official with China Securities Regulatory Commission. Wang Xiaolu, journalist of Caijing Magazine, has been placed under "criminal compulsory measures" for suspected violations of colluding with others and fabricating and spreading fake information on securities and futures market, Xinhua learned on Sunday. He is held over suspicions of insider dealings, taking bribes and forging official seals. In return, the head of the company offered bribes worth several million yuan to him. According to Liu confession during the investigation, he has taken advantage of his position to secure an approval from the securities authorities for a public company and help the growth of the company shares. (news.financializer.com). As reported in the news.

excessive reliance: China was in windmill mode, committed to structural reform no matter how difficult, according to The Japan Times. The new normal called for more moderate, consumer-led growth. When the wind of change blows, some build walls while others build windmills. The financial system would be modernized and the country aimed to shift away from its excessive reliance on debt-fueled, infrastructure-powered growth that had led to industrial overcapacity and an epic credit bubble. Roughly seven months later, China finds itself at the epicenter of a global stock market rout that has vaporized $8 trillion in wealth. Better still, the makeover would be pulled off smoothly: What I want to emphasize is that regional or systemic financial crisis will not happen in China, and the Chinese economy will not head for a hard landing, Li said. (news.financializer.com). As reported in the news.

: In July, the GDP decline accelerated to 4.6 percent year-on-year, according to The Moscow Times. However, for the first time since the start of the year, the Russian economy grew by 0.1 percent last month compared to June. Drops in construction and investment remain the major negative factors affecting the Russian economy, the report said. The Economic Development Ministry said in the report that Russian GDP reached an inflection point in July. Since early 2014, Russia economy has slowed dramatically due to a sharp drop in global oil prices and Western sanctions imposed on Russia over its role in the Ukraine crisis. Mining, manufacturing, retail, production, and distribution of electricity, gas and water all positively influenced the dynamics of Russian GDP in July, the report said. (news.financializer.com). As reported in the news.

stock markets: In a speech on Saturday, Stanley Fischer, the vice-chair of the Fed Board of Governors, suggested inflationary pressures could soon lead to an increase, according to The Guardian. His comments are likely to add to the volatility of already skittish markets. Related:Fed vice-chairman hints at interest rate increase in speech on inflation The markets open Monday as investors digest news that the Fed is still actively considering a September rate hike. Hundreds of billions of dollars were wiped out and, mostly, gained back on stock markets across the world last week as traders and investors panicked about a possible slowdown in the Chinese economy, the world second-largest. On Friday, the Dow closed down marginally for the day but up 1.1% for the week after rallying for two days on comments from Bill Dudley, the president of the New York Federal Reserve and the second-most important US central banker after Janet Yellen. In New York, the Dow Jones industrial average index lost 1,000 points last Monday – a day dubbed Black Monday by Xinhua, China official news agency. (news.financializer.com). As reported in the news.

Ninth Ward: This week alone he invoked the perils of climate change during visits to the National Clean Energy Summit in Las Vegas and New Orleans’ storm ravaged Lower Ninth Ward to commemorate the tenth anniversary of Hurricane Katrina, according to MSNBC. No challenge poses a greater threat to our future than climate change, the president told a crowd in Las Vegas. The trip to the Alaskan Arctic — the first by a sitting president — is the culmination of an increasingly forceful climate change policy push over the past two years by the Obama administration. *Related: Obama announces new green energy initiatives in Las Vegas* The White House has honed in on climate change as a core policy priority with a domestic and international approach that has met with mixed response among both liberals and conservatives. With these trips, along with his trek to Alaska where he will speak at a State Department-sponsored conference on the Arctic, Obama is attempting to set the stage for a major international climate change agreement he hopes will come from a summit in Paris in December. The president has from the beginning recognized that climate change is an existential challenge to the country and the world. That agreement could help secure his legacy as the first sitting president to address global climate change in a substantive way, environmental policy experts said. (news.financializer.com). As reported in the news.

Russia: Yes, quite a lot of economic and financial damage had already been done, popular living standards were strongly impacted by the ruble crisis and the subsequent spike in inflation and the banking sector was being held together with bubblegum and duct-tape, but a plausible narrative could be constructed in which Russia had gone toe-to-toe with the West and emerged a bit scuffed but basically intact, according to The Moscow Times. Now, however, it is obvious for all to see that Russia is in for a much rougher ride than initially expected. Oil was cautiously rebounding into the $70 a barrel range, the economy was faring modestly better than expectations, inflation was starting to moderate, and the ruble had recovered a good deal of its earlier losses against the dollar, and the Central Bank was confident enough in the economy prospects to begin gradually ratcheting down its emergency rate increase. Pretty much all of the trends that, in the spring, served as the basis of cautious optimism have reversed. Persistent oversupply makes any short-term rally an unlikely prospect. Even after a modest rally earlier this week, the price of Brent crude sits around $50 a barrel, substantially lower than it was just a few months ago. (news.financializer.com). As reported in the news.

Reserve Bank: The central bank will hold its monthly board meeting on Tuesday and it is widely expected to keep the cash rate at a record low of two per cent, where it has stood since May, according to Nine News Australia. Australian National University Timo Henckel says wild swings on global stock markets have made investors edgy, the economic news coming out of China is not favourable and figures last week showing domestic private investment has plummeted."On the other hand, US growth surged to 3.7 per cent annually and fears of a debt crisis in the eurozone have abated," Dr Henckel said. Academics do not expect the Reserve Bank to lower the cash rate despite global market volatility and weak domestic investment figures. On balance he expects interest rates should be left on hold. The group tries to gauge the likely outcome when RBA governor Glenn Stevens and his team meets to decide on interest rates every month. Dr Henckel chairs the ANU so-called "RBA shadow board" made up of academics, economists and former RBA board members. (news.financializer.com). As reported in the news.

: Li said international market instability has increased the uncertainties around the global economic recovery, and the impact on China financial market and imports and exports has also deepened, with the economy facing new pressure, according to Euro News. He defended China efforts to steer through a volatile period since mid-June, when China stock market plunged. The premier, in remarks published late Saturday after a special cabinet meeting, said China is continuing to steadily manage its economy. On Friday, Shanghai benchmark index <.SSEC> was nearly 38 percent below where it was on June 12. The yuan will stay basically stable as a reasonable and balanced level, he said. The premier reiterated earlier remarks that there no basis for continued depreciation of the yuan following its devaluation on Aug. 11. (news.financializer.com). As reported in the news.

: Instead of a rally, futures in New York fell for four straight sessions even as global equities plunged to a two-year low, according to Bloomberg. Rather than providing a refuge from the meltdown, gold volatility rose right along with a measure of equity turbulence, diminishing its appeal as a haven. They were wrong. As stocks started to recover, the metal kept falling because of reports that signaled gains for the U.S. economy. More than $52 billion has been wiped from the value of physical bullion funds since then. It been a tough two years for investors in gold, which first fell into a bear market in April 2013. (news.financializer.com). As reported in the news.

: There is also a recall for Manchester United left back Luke Shaw, who last played in the 3-1 victory over Scotland in November 2014, according to Euro News. The only uncapped member of the 22-man squad is Burnley goalkeeper Tom Heaton. The powerful midfielder won his only cap to date against San Marino two years ago. Jonjo Shelvey gets another chance as he has been very impressive since the start of the season, England coach Roy Hodgson said in a statement. Before that there are two matches we must focus on. This latest squad shows we are working a good number of players with a claim to be England regulars and secure a place in Euro 2016. (news.financializer.com). As reported in the news.

stock market crash: Wang was held for fabricating and spreading fake information on securities and futures markets, according to Xinhua, a state-run news agency, according to The Japan Times. According to the report, Wang confessed that his false information had caused panics and disorder at stock market, seriously undermined the market confidence, and inflicted huge losses on the country and investors. Wang Xiaolu, a journalist with Caijing magazine, was detained by Chinese authorities following China recent stock market crash. Wang wrote a story in July saying the securities regulator was studying plans for government funds to exit the market. Xinhua reported that authorities had also detained an official from China securities watchdog and four senior executives of the country major securities dealer for stock market violations. The China Securities Regulatory Commission quickly denied the Caijing story, labeling it irresponsible . But Caijing said it defended journalists’ rights to do their duty under the law, according to a statement posted on its website. (news.financializer.com). As reported in the news.

: In January-June, Zoomlion booked a 309.8 million yuan net loss, in line with its own forecast of 300-380 million yuan, according to a stock exchange filing late on Sunday, according to Euro News. It made 900.1 million yuan net profit a year earlier. Encouraged to expand after Beijing unleashed a $644 billion stimulus package in 2008 during the global financial crisis, Chinese heavy equipment makers are stuck with a glut of unsold equipment and factories they do not need. Sany reported a 75.6 percent fall in net income to 334.8 million yuan for the same period, according to a filing. Projects under the Silk Road plan include a network of railways, highways, oil and gas pipelines and power grids across central, west and south Asia to as far as Greece, Russia and Oman. Even China pledge to support the Silk Road infrastructure initiative with $40 billion worth of investments may not be enough to revive the heavy machinery sector, industry players and analysts said. (news.financializer.com). As reported in the news.

: The statement said people punished in the campaign expressed repentance over their misconduct that have "caused panic, misled the public and resulted in disorders in stock market or society." According to the statement, these people are punished for circulating rumors such as "man jumped to death in Beijing due to stock market slump," "at least 1,300 people were killed in Tianjin blasts" and some seditious rumors about China upcoming commemorations of the 70th anniversary of the end of World War II. The ministry statement pledged strict measures to enforce rule of law and punish violations on the Internet and called on Internet operators to strengthen management to ensure cyberspace order, according to Xinhua China. A statement issued by the Ministry of Public Security on Sunday said that 165 online accounts were closed for relevant violations. (news.financializer.com). As reported in the news.

DCEO Listing: Though low oil prices have impacted investor confidence, government efforts to ease restrictions as well an emphasis on economic diversification and cross-sector spending, have helped facilitate public issuances, according to Business Week. According to Dr. Last year saw 27 IPOs raise $11.5 billion, a record since the start of the Global Financial Crisis. Obaid S. Al Zaabi, DCEO for Listing, Disclosure and Legal for the Securities and Commodities Authority and Chairman of the Arab IPO Summit, there is still much work to be done in the Middle East to create the right conditions for the expansion of public issuances. The UAE has already made significant progress in line with this approach with financial market regulators initiating significant developments recently to promote the local IPO markets and support its growth, says Zaabi. In order to ensure long-term financing in regional markets, it is imperative for the market to achieve the balance between conventional investors and IPOs as an ultimate source to raise capital. (news.financializer.com). As reported in the news.

: Yes, quite a lot of economic and financial damage had already been done, popular living standards were strongly impacted by the ruble crisis and the subsequent spike in inflation and the banking sector was being held together with bubblegum and duct-tape, but a plausible narrative could be constructed in which Russia had gone toe-to-toe with the West and emerged a bit scuffed but basically intact, according to The Moscow Times. Now, however, it is obvious for all to see that Russia is in for a much rougher ride than initially expected. Oil was cautiously rebounding into the $70 a barrel range, the economy was faring modestly better than expectations, inflation was starting to moderate, and the ruble had recovered a good deal of its earlier losses against the dollar, and the Central Bank was confident enough in the economy prospects to begin gradually ratcheting down its emergency rate increase. Pretty much all of the trends that, in the spring, served as the basis of cautious optimism have reversed. Persistent oversupply makes any short-term rally an unlikely prospect. Even after a modest rally earlier this week, the price of Brent crude sits around $50 a barrel, substantially lower than it was just a few months ago. (news.financializer.com). As reported in the news.